Relative Return
The return that an asset achieves over a period of time compared to a benchmark. The relative return is the difference between the absolute return achieved by the asset and the return achieved by the benchmark. Investopedia Says:
Relative returns are most often used when reviewing the performance of a mutual fund manager. Because holders of mutual funds are charged management fees, they expect a manager to achieve returns higher than the benchmark index. For example, if the fund you are holding achieves an absolute return of 12% over the past year while the benchmark index provides a return of 15%, then the fund has achieved a relative return of -3% for the year. Related Terms:
Absolute Return
Benchmark
Expense Ratio
Hedge Fund
Index
Index Fund
Intelligent ETF
Market Neutral
Mutual Fund |